Dear Martin and Stas,
Thank you very much for your helpful advice. I understand that what I was
asking to Stata has no sens, in fact I have to do a conditional logit and
so create a dummy variable for every country.
HTH
Isabelle
> This is likely an (empirical) underidentification issue. Your -taxe-
> variable probably does not vary within -country-, and limited
> dependent variable models do not like it when you can predict some
> outcomes perfectly from the values of the explanatory variable.
>
> In fact, I agree with Martin, that's a weird statement of the problem
> to me. -country- makes a poor dependent variable unless you are
> talking about some sort of empirical IO where a big international firm
> chooses where to place their headquarters... I cannot think of any
> other example. If that is indeed your research question, then you are
> basically out of luck. You can try to add some other explanatory
> variables in the RHS of your model, but it may not work in the end,
> with the parameters for -taxe- still not estimated properly (or
> estimated with huge or missing standard errors).
>
> On 2/25/09, [email protected] <[email protected]> wrote:
>> Hello,
>>
>> I'm trying to do a multinomial logit and I write to stata: "mlogit
>> country
>> taxe" where country is the country's choice of firms and taxe is
>> corporate
>> tax of the country.
>>
>> Stata refuses to provide results and indicates: "flat region resulting
>> in
>> a missing likelihood"
>>
>>
>> In Stata's help I have this message:"convergence not achieved;
>> You have estimated a maximum-likelihood model and Stata's
>> maximization procedure failed to converge to a solution;
>> see [R] maximize. Check if the model is identified."
>>
>> I don't know if I have a problem of stata's command or of econometrics;
>> in
>> this last case, could you indicate me please which topic to study to
>> solve
>> my problem?
>>
>>
>> (maybe it is a very obvious question but I am new in econometrics and
>> I'm
>> a bit lost in regressions!)
>>
>> Thank you very much for help,
>>
>> Isabelle
>>
>> *
>> * For searches and help try:
>> * http://www.stata.com/help.cgi?search
>> * http://www.stata.com/support/statalist/faq
>> * http://www.ats.ucla.edu/stat/stata/
>>
>
>
> --
> Stas Kolenikov, also found at http://stas.kolenikov.name
> Small print: I use this email account for mailing lists only.
> *
> * For searches and help try:
> * http://www.stata.com/help.cgi?search
> * http://www.stata.com/support/statalist/faq
> * http://www.ats.ucla.edu/stat/stata/
>
*
* For searches and help try:
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